Ripple’s general counsel, Stu Alderoty, says there is one legal issue at the heart of the charges filed by the US Securities and Exchange Commission (SEC) against the San Francisco-based payment company.
Lawsuit from SEC
Earlier this week, the SEC officially filed a lawsuit claiming that XRP was an unregistered security at the time of its release and remained a security to this day.
Alderoty asks why the SEC complaint dating back to 2013 has not been filed in seven years.
There are no claims of “fraud” or “misrepresentation”. There is a legal question: Did some of Ripple’s XRP distributions form an investment contract? We look forward to suing in court and providing the industry with the clarity it deserves. ”
As always, the SEC is moving forward with the information again. For example: He states that during 2018, Ripple’s XRP sales represented only 0.095% to 0.43% of global XRP volume, and in the first quarter of 2019 these sales reached 0.22% of total trade volume.
Will provide clarity
Ripple’s lawyer also says that the SEC complaint does not provide clarity against other classifications made by the US government.
“In 2015, the US Government concluded that XRP is a cryptocurrency. Last time I checked, the SEC is still part of the US Government. Here’s the plus side of the case – the industry will finally get the clarity it deserves. Goodbye “Howey test”, hi “Ripple test.”
Both Alderoty and Ripple CEO Brad Garlinghouse say the world will soon hear the corporate side of the story.